4.1 Process
Proof of credit is generated through a computation sequence that provides a method of ensuring the trustworthiness of transactions between two parties. It utilizes an encryption function to generate the sequence in such a way that the final output cannot be predicted from the inputs of individual sequence sand must be fully executed to generate the output. This function runs sequentially on a single kernel and periodically records the current output, which can be recalculated and verified by external computers.
The entire process utilizes Privacy Preserving Computation (PPC) algorithms in the following order:
Data Preprocessing: Before privacy computing, it is typically necessary to perform some preprocessing on the raw data. This preprocessing includes data cleaning, standardization, anonymization or other forms of data transformation to ensure the effectiveness of privacy computing.
Privacy Computing Technologies: Homomorphic encryption or differential privacy, the use of which depends on the nature of the computation and the specific requirements for privacy, corresponding to different transaction scenarios
Data Encryption: Homomorphic encryption allows computations to be performed on encrypted data without the need to decrypt it first.
Privacy Computation Performing: Perform the required computations, using privacy-preserving computation techniques to ensure the privacy of the original data. This includes performing operations on encrypted data or performing computations without sharing the original data.
Differential Privacy: Using differential privacy requires introducing noise or randomness into the computation results. This helps prevent the inference of individual data through multiple queries or other means.
Results Decryption: When data is encrypted, it is necessary to decrypt the computation results. In homomorphic encryption, the results can only be obtained after decryption.
Verification & Consensus: Verification and consensus are required to ensure correctness and consistency of computations. The consensus is Proof-of-Stake (PoS).
Results Output: The final computation results are used to generate reports, support decision-making, and produce a credit score ranging from 0 to 255, where 0 represents the lowest credit score and 255 represents the highest credit score.
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